How interesting. Does someone have the address of this Red Island Cafe?

Does someone have the name of the owner / promoter of this Red Island Cafe?

The Securities Commission of Malaysia would love to have a chat with him / her, I am sure

It's not so much MLM, but what they are doing is promoting the offering of shares to public which falls under the prospectus regulations of the Capital Market & Services Act.

Not to worry, I have informed the Securities Commission authorities and they will undertake their own undercover investigations.

My advice, meanwhile, is to avoid such things.

Hi...

With regards to the question on investment deposits - deposit-taking is regulated under BAFIA. Check out Bank Negara for a listing of deposit-taking institutions.

What the SC regulates, is on the basis of the Capital Markets & Services Act (which covers various items like prospectus registration, corporate finance activities, etc.)

MLM not equal to deposit taking.

There will be some genuine MLM (usually the type where it's established, you need to slog hard e.g. Amway)... but what you are technically worried about are Ponzi schemes which are masquerading as MLM.

http://en.wikipedia.org/wiki/Ponzi_scheme

With regards to the Island Red Cafe affair, the issue may not be fraud in terms of them promising abnormal returns paid out of new incoming shareholders. What happens is that the shareholders (apparently) own shares in each of the operations. The issue with regards to the Island Red Cafe is that their form of marketing the shares is effectively illegal (under the CMSA) if they are offering shares to the public. On a separate note, it's only fraud if they are inflating the returns from the cafe by utilising the capital investment to generate spurious dividend payments back to the investors and misrepresenting it.

This may be useful to everyone.

How to go about reporting Investment Scams.

You can lodge a complaint by completing the following form below and faxing or sending to the address below

Investor Affairs & Complaints Department
Securities Commission
No 3 Persiaran Bukit Kiara
Bukit Kiara
50490 Kuala Lumpur

Tel: 603 6204 8999
Fax: 603 6204 8991
E-mail: aduan@seccom.com.my

Fill it out best you can, and draw attention to the issue.

The more people report it, the higher up the priority chain it goes to for investigation.

SC has set up a specific target time period to respond to all queries, so take advantage of this...


Attached File(s)
 complaintsform.pdf ( 135.44k ) Number of downloads: 71

This doesn't answer his question. His question was whether or not the returns are guaranteed. It's not.

Stay away from IRC. This is a clear case of a get-poor-quick scheme

This post has been edited by Playbook: May 3 2008, 04:50 AM

This is an extremely "dangerous" statement that carries a lot of legal implications. Be careful. Technically, shareholders are liable as per the paid-up capital. Your statement is tantamount to offerring a guarantee against losses, and may run contrary to what the law permits.

If you have the company registration number, the company's annual audited financial statements and lists of shareholders are available from the Companies Commission of Malaysia.

This is an excellent way to test and check out the directors & shareholders (you can even see where they live!) and see the company's performance to date. You will also be able to tell who are their auditors, company secretary, etc.

Go to Suruhanjaya Syarikat Malaysia (Companies Commission of Malaysia).
http://www.ssm.com.my/

Go to e-info.

Type in Island Red Cafe.

No Co. Ref No Company Name
1 779570-K ISLAND RED CAFE FRANCHISE SDN. BHD.
2 815141-T ISLAND RED CAFE (CENTRAL) SDN. BHD.
3 815143-W ISLAND RED CAFE (NORTHERN) SDN. BHD.
4 815920-X ISLAND RED CAFE (SOUTHERN) SDN. BHD.

No Bus Ref No Business Name City State
1 001713877-D ISLAND RED CAFE KUALA LUMPUR

Whomever wants to get this info, let me know. I will be able to purchase it for you, and sell it to you (at a rate less than that charged by CCM). Unless you intend to buy it, and post it up here for everyone to see, in which case just make a donation for the actual cost and I will put it up here for everyone to see...

This post has been edited by Playbook: May 8 2008, 08:25 PM

I absolutely agree with you.

That's why I think people should investigate the actual financial statements. Cappucino was the one who indirectly gave the idea with the statement regarding auditors... you can't hide it - all info is transparently available from CCM. No point asking the owners whether or not they want to reveal. It's out there.

Anyone who is considering investing in a company / business should always check out the people behind the company / business. A lot of people might say they do that, but the due diligence falls far short of what is required.

For public interest, here's some statutory information on them.*
*This might be useful for those of you who have already invested, and would like to know who you can contact if you are unhappy about your investment to date.

Note: Please feel free to link to this post in other threads regarding Island Red Cafe (IRC). Helps draw attention to the people behind it, and also provides people background information.

Island Red Cafe Franchise Sdn Bhd (779570-K), formerly known as CTI Cleaning Sdn Bhd
Change Date: 16-01-2008 (16th January 2008) (Initial Registration Date: 04-07-2007 (4th July 2007))
Registered Address: No. 39-2, Jalan SL 1/3, Bandar Sungai Long, Kajang, 43000 Selangor
No specified Business Address.
Authorised Capital: RM1.0 mil
Issued Capital: RM1.0 mil (RM2 cash and RM999,998 other than cash)

Directors
1. Teow Chee Chow (Appointed 4th July 2007)
K1-G-08 Kenari Court, Jalan Pandan Indah 6/1, Pandan Indah, 55100 Kuala Lumpur
IC / Passport: 890117-07-5653

2. Ong Tong Swan (Appointed 20th June 2008)
3D-21-03, N Park, Jalan Batu Uban, 11700 Gelugor, Pulau Pinang
IC / Passport: 771103-07-5749

Secretary
1. Azlizan bin Abdul Aziz (Appointed 4th July 2007)
AC-4-2, Jalan Pandan Indah 3/6, Pandan Indah, 55100 Kuala Lumpur
IC / Passport: 801025-06-5055

Share distribution:
1. Ch'ng Wee Ling (IC / Passport: 680331-08-5013) (244,999)
2. Ong Tong Swan (244,999)
3. Lee Choi Yoong (IC / Passport: 790912-05-5346) (1)
4. Teow Chee Chow (510,001)

No statutory financial statements filed per 2nd January 2009.

Note: If you require it, you may contact me about purchasing a copy of the above statutory statements. Have a good day.